Online video platforms do not come cheap. The most recent version of the VOPED online video platform, for instance, required the writing of hundreds of thousands of lines of programming code – a significant investment in manpower and capital. The competition to deliver an online video platform to meet the needs of today’s online video business models, and which consistently stays ahead of the technology curve, definitely requires a major investment.
This is certainly an important investment for a service provider interested in delivering the best user experience that will help fuel clients’ business models to success, which often include delivering and monetizing premium video content to eager audiences. Nonetheless, there are many media, entertainment, corporate, and other organizations that still struggle with the buy or build conundrum.
Should they build a video platform to deliver and monetize their video content online, or buy access to software as a service (SaaS) that will relieve them of the challenges that come with it?
Many organizations like to control their assets and systems directly. They are used to making large investments in-house, and it is often difficult to switch the cultural perspectives that drive such decisions. This may be especially true if the organization has made a large investment in the IT function and decision makers have the need to continually justify that investment.
Some technology start-ups struggle with the decision too, though they are often under such time constraints that the path to a decision to buy or build is a shorter stride than for established businesses.
When it comes to the buy or build conundrum in which many organizations get trapped, this is actually one of the easier challenges that company decision makers will face, and here is why:
Reasons why to build can be the wrong course…
Cost – Building an online video platform can require a major capital investment in the millions of dollars. This is investment capital which could be applied to other areas of your business or invested in financial instruments that can provide direct capital returns. When building the solution, the cost must be completely absorbed by the business model that requires the solution, whereas a service platform can spread these costs across their system of clients, a concept referred to as multi-tenancy.
Timing – Often when organizations manage technology development projects in-house, mission creep sets-in quickly. Studying the challenge itself may eat-up time that could be used in development. The in-house development can then drag on and on to the detriment of the business purpose of building the online video platform altogether, especially if it is split among various programming teams.
Service Expertise – When you have the option to buy software you also get the benefit of the years of experience of the programmers and engineers who built the product. These experts have broad and deep experience from serving a range of clients around the clock. In-house experts can get bogged down offering 24/7 support instead of focusing their attention on things that only they can do.
Reasons why to buy is usually the best solution…
Cost Efficiency/Technology Upgrades – When you choose SaaS instead of building a platform, some of the cost efficiencies that you enjoy come through the technology chase inherent in online video technology. For example, when VOPED integrates new standard functions into the system, the platform costs to clients remain the same. With a multitenancy system, there can be benefits that are spread across the system, and when a need arises it may already be in the pipeline of development. Certainly there are specific needs for individual client objectives that arise which require custom development projects, but the task of keeping-up with the latest technologies applicable to online video platforms is exhaustive, so when you buy access to a platform that chase is handled for you.
Partnership – Service providers offering a critical element of your infrastructure make a key contribution to your business plan to mutual benefit. Responsiveness and flexibility are important qualities that some providers deliver better than others. Especially in the fast-paced environment of online video, it’s important to have a provider that prioritizes their clients’ business mission, and banks on a long-term relationship with all of the ups and downs that can ensue. The right provider can enhance your business mission, and you’ll experience that through exceptional customer service and flexibility when you need it.
Agility – Like many functions, the services that organizations typically outsource come with greater agility, and your online video platform is no exception. Service providers dedicate the full scope of their resources to provide the technology and support needed as things change and new requirements develop, which is guaranteed to happen with online video.
Know-How – Online video requirements are evolving at a rapid pace to meet growing demand and end-user expectations. Service providers are continually advancing their knowledge base. From Digital Rights Management to hosted website solutions, your options for delivering and monetizing video content are limited only by the know-how of the online video platform company that you select.
The decision to buy or build your online video platform is not as difficult or complicated for most organizations once you fully consider the cost, timing, and technology benefits of outsourcing this SaaS. Decide to partner with an online video platform company today and the path to delivering and monetizing your video content will be short, manageable, and cost efficient.
To find out about how VOPED can meet your company’s requirements and the challenges of the rapidly advancing demands of online video, please contact us today!